1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
LekaFEV [45]
3 years ago
15

When a periodic inventory system is used a.both revenue and cost of goods sold are recorded each time a sale is made. b.only the

cost of goods sold is recorded each time a sale is made. c.only the reduction of inventory is recorded each time a sale is made. d.only revenue is recorded each time a sale is made.
Business
1 answer:
Hoochie [10]3 years ago
8 0

Answer:

D) only revenue is recorded each time a sale is made.

Explanation:

When a company uses a periodic inventory system, the cost of goods sold is calculated only after the physical inventory count is completed. This physical count is done periodically and may happen once every few months or even once a year.

The periodic system is obsolete nowadays and cheaper technological solutions make it easier for companies to use a perpetual inventory system which is much better in every possible way.

You might be interested in
The strategy in a mature industry to invest in infrastructure that would be cost-prohibitive for new entrants to deter new compe
kozerog [31]

Answer: Option D  

Explanation: In simple words, technology upgrading refers to the process in which a firm intensely changes the level of technology it is using for its operations. In such a process the organisation implements a more advanced technology so that it can enhance the operational activities within.

Technology up gradation is a necessity in today's competitive business environment but if implemented in a right way it can give an organisation a strong competitive advantage which will open new doors to success.

     For example automobile industries upgraded their technology to a higher level which made the operation at such a high scale that it became an oligopoly industry.

An oligopoly industry is the one in which there are few firms operating at a high scale with difficulty in entry due to heavy investments.

7 0
3 years ago
Mandel transferred property to his new corporation in a section 351 transaction. Among the several properties transferred by Man
JulsSmile [24]

Answer:

False

Explanation:

§ 351 establishes that businesses shall not recognize any capital gain or loss from property transferred to them in exchange of stocks or partnership share. So the businesses have to record this type of transactions at their fair market value and not their tax basis.

5 0
2 years ago
The following two errors were made in the physical inventory counts: 1. 2018 ending inventory was understated by $8,000. 2. 2019
elena-14-01-66 [18.8K]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

The following two errors were made in the physical inventory counts: 1. 2018 ending inventory was understated by $8,000. 2. 2019 ending inventory was overstated by $4,000.

We were not provided with the relevant information to recalculate the cost of goods sold, but, I can provide the formula to solve the problem.

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

1- COGS= beginning finished inventory + cost of goods manufactured - (ending finished inventory + 8,000)

2- COGS= beginning finished inventory + cost of goods manufactured - (ending finished inventory - 4,000)

7 0
3 years ago
Assuming a service level of 99% for all parts, what will be the impact on the total inventory investment if the number of wareho
nlexa [21]

Answer:

thanks for poitns 10 points

5 0
3 years ago
Suppose Country Cafe restaurant is considering whether to​ (1) bake bread for its restaurant​ in-house or​ (2) buy the bread fro
Mekhanik [1.2K]

Question

Suppose Country Cafe restaurant is considering whether to​ (1) bake bread for its restaurant​ in-house or​ (2) buy the bread from a local bakery. The chef estimates that variable costs of making each loaf include $ 0.52 of​ ingredients, $ 0.23 of variable overhead​ (electricity to run the​ oven), and $ 0.78 of direct labor for kneading and forming the loaves. Allocating fixed overhead​ (depreciation on the kitchen equipment and​ building) based on direct​ labor, Country Cafe assigns $ 1.04 of fixed overhead per loaf. None of the fixed costs are avoidable. The local bakery would charge $ 1.74 per loaf.

  1. What is the absorption cost of making the bread
  2. What is the variable cost
  3. Should Country make the bread or buy
  4. What other factors should be considered

Answer

  1. Absorption costing cost per unit= $2.57
  2. Variable costing cost per unit=1.53
  3. It will be cheaper for Country Cafe to produce internally than to buy from outside as it will save $0.21 per unit of bread
  4. See explanation for other factors

Explanation:

Absorption cost= Direct cost + Variable overhead + Fixed overhead

                   = 0.52 + 0.23+ 0.78 + 1.04

                   = $2.57

Variable cost of making the loaf= Direct cost + Variable overhead

                     =0.52 + 0.23+ 0.78 = $1.53

                                                                               $

Variable cost of making                                     1.53

External purchase price                                      <u>1.74</u>

Extra cost of external purchase per unit            <u>0.21 </u>

It will be cheaper for Country Cafe to produce internally that to buy from outside as it will save $0.21 per unit of bread

Non-Financial factors

Product Quality. Country Cafe needs to be sure that the quality of bread to be provided wont be undermined.  should it decides to buy.

Trade secret: is there a guarantee that the contractor would not divulge or abuse the privileged information about the ingredients to be mixed and some other trade secrets

Delivery : Reliable and timely delivery are very important. Would the external supplier be able to meet expectations?

<u />

4 0
3 years ago
Other questions:
  • 01:42:59 Scott really enjoys working with money, including making it grow. He is also a natural leader and would enjoy working w
    11·2 answers
  • Greta is the only female employee in the maintenance department of Hydro Hydraulics Inc. Greta’s supervisor and co-workers tease
    13·1 answer
  • Mr. Drucker uses a periodic review system to manage the inventory in his dry goods store. He likes to maintain 15 sacks of sugar
    12·1 answer
  • If a bank sells​ $10 million of bonds to the Fed to pay back​ $10 million on the loan it​ owes, what will be the effect on the l
    9·1 answer
  • You're 35 years old now, and you want to purchase life insurance which will cover your spouse for your lost income in the event
    13·1 answer
  • What is photo synthesis?​
    9·1 answer
  • SwiftyCompany is considering two capital investment proposals. Estimates regarding each project are provided below:
    5·1 answer
  • Your monthly paycheck after deductions is $4352.
    12·1 answer
  • Again, consider Sharon, a single mother with two children under 18 who earns an annual income of $16,000. Suppose that Sharon qu
    8·1 answer
  • EXPLAIN WHY ARE CRYPTOCURRENCIES RELIABLE.
    11·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!